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• Research suggests that generative AI tools are embraced more by faculty than by students, who are using the technology less than anticipated.
• Some schools have yet to find a truly transformative use for AI, creating uncertainty about whether it will change the educational experience in the way many thought it might.
• Business schools should approach AI with curiosity and experimentation but remain pragmatic about its current capabilities.

“People may have different opinions on AI, but I think one thing is clear: it’s going to have at least some impact on the world.”

It’s difficult to disagree with the sentiments of Oguz Acar, a professor of marketing and innovation at King’s College London. Because for all of the predictions about the potential of AI to , for the moment it remains a possible future rather than a current reality.

Still, there’s no doubting the , which means universities and business schools must react. But is there a danger that in their efforts to equip students with AI skills, business schools are placing too much emphasis on a still-developing technology?

Professors Are Putting More Trust in Students Than Ever Before

ChatGPT wasn’t the first generative AI (GenAI) tool to emerge, but it certainly marked a sea change in society’s attitudes toward the technology. Every school in the world seemed to recognize its potential and rushed to incorporate (or prohibit) its use in the classroom.

Yet almost two years after the launch of ChatGPT, it’s fair to say that education hasn’t quite been transformed in the way we thought it might be—for worse or for better. There’s that students are improperly using AI to write their assignments at greatly increasing rates, and the technology isn’t yet able to deliver highly personalized teaching to each student in a class.

The lack of significant change is not because schools are shutting down AI, however. At King’s College London, Acar actively encourages the use of AI among his students. “We tell them: you can use it; you don’t have to worry about cheating as long as you report it properly.”

Acar’s attitude stems from the belief that gaining a mastery of AI can only help students in their future careers. But incorporating AI in the classroom also poses some risks. Professors are putting more trust in students than ever before, essentially leaving it up to the students whether or not they use GenAI tools that can literally .

“Everything I teach them—including AI—is to make it easier for them to succeed. And AI is a competitive tool.” —George Benaroya

George Benaroya is an adjunct professor of finance at New York University’s Stern School of Business. He also recognizes that if AI skills can help his students succeed in life, it’s something he’s obligated to teach them.

“As a teacher, as a professor, what you want to do is help your students do better in life and be happier,” he says. “So everything I teach them—including AI—is to make it easier for them to succeed. And AI is a competitive tool.”

Benaroya’s students are free to use AI, as well, but with certain conditions. They must fact-check every AI-generated piece of content and write at least 50 percent of the text themselves. “It is, in my opinion, easy to catch” when students neglect to write the minimum amount of text themselves, he says. He has also rarely encountered students not contributing half of the writing.

For Benaroya, imposing these conditions is a recognition of the limitations of AI—and an important step toward mastering it.

“It still makes tremendous mistakes. If you don’t know what you’re doing with it or what you'll get out of it, things can get really bad.”

Faculty Are Using AI More Than Students

Despite the free rein that many students have to use tools like ChatGPT, something curious is happening. Because it seems—for now at least—that AI is more popular among teachers than students.

According to that surveyed students and educators from middle school to university graduate school, 34 percent of teachers use AI frequently in their work, compared to just 24 percent of students. And that can’t be attributed to pressure from school administrators, either: while 58 percent of students support more use of AI in the classroom, that figure rises to 70 percent for teachers.

So why is that?

Well, until now, it seems that one of the biggest draws of AI for teachers has been its ability to save them time. “Faculty empowered by AI can spend more time developing innovative teaching methods and designing curricula that improve quality and student outcomes,” says Arturo Castellanos, an assistant professor of business analytics at the College of William and Mary’s Raymond A. Mason School of Business.

While 58 percent of students support more use of AI in the classroom, that figure rises to 70 percent for teachers.

Acar is using that extra time to improve the classroom experience for his King’s College students. “Now, I can put together a case study for a discussion that you want to have in class in 10 minutes,” he explains. “This was kind of unthinkable a few years ago—you could have done it, but you would have had to dedicate so much time that you don’t always have.”

GenAI has opened plenty of new possibilities for Acar and his business classes. He is generating quizzes and even songs based on classroom content. He’s also excited about the potential of using the technology to provide more feedback to his students .

Although AI is adding new dimensions to the classroom experience, anyone who has experimented with the technology will know it’s far from perfect. And it seems students know that better than anyone.

Why Students Are Holding Back When It Comes to AI

Last year, Wake Forest University School of Business, in North Carolina, decided to survey its students about their use of AI in the classroom. When the results came back, school leaders were surprised to discover how low the adoption of GenAI tools was.

“A significant contributor we hadn’t considered was peer judgment,” says Shannon McKeen, executive director of the school’s Center for Analytics Impact. “Some students felt that using GenAI was ‘taking the easy way out’ and feared being judged by their peers—much like how a cyclist might be hesitant to use an e-bike out of concern for how other riders might react.”

Acar has faced similar challenges at his school in London. “Not everyone is that keen on using it. So sometimes there is pushback from students, and there are also some differences in their AI capabilities. It means I have to level the playing field for students by providing them with basic information about AI to develop their skills—I don’t want some to have an unfair advantage over others.”

Are attitudes going to evolve as AI tools evolve?

McKeen also cites a lack of awareness among students about what is and isn’t permitted. While some classes allow or even encourage the use of AI, other professors in the same university may have different rules in place.

Their experiences reflect wider trends across GenAI users. While educators in some countries show sky-high interest in and awareness of the tool, regular usage . This disparity suggests that many are struggling to find a clear use for the technology—not just in education, but across every sector.

All of these factors are creating a sense of uncertainty around AI, with students unsure of whether to embrace it. The question is: are attitudes going to evolve as AI tools evolve?

Will AI Ever Truly Transform Education?

Even as schools find more and more uses for AI, it may take some time for the technology to really start to reshape education.

According to Acar, any changes won’t be immediate or widespread. “In the next two to three years, not a lot will change at universities and business schools,” he affirms. “But some smart schools around the world will be using these tools to make their overall learning experience incomparably better than what we have now.”

He goes on to list a few of the exciting possibilities of AI in education: a personalized AI assistant for each student, instant (and accurate) student feedback, and even converting textual information into a different medium to suit different learners.

For now, though, it’s vital that students are well-prepared for whatever comes next. We still don’t know what longer-term impact AI will have on education, and any talk of widespread transformation should also involve discussion of a clear strategy. Today’s adoption of AI is about recognizing its potential without staking everything on it. So for now, the best bet may be to, well, hedge your bets.

“Like any change, slow adoption may be a limiting factor in integration of AI into academia,” says McKeen. “My mantra is: ‘I don't know, but I want to learn.’ I believe in a cautious, wait-and-see approach while hedging my bets.”